Sending an invoice is the easy part. Getting paid? That's another story.
Late payments are one of the most common — and most stressful — problems for Canadian freelancers. If you're not following up systematically, you're leaving money on the table.
This guide gives you a proven 4-email follow-up sequence with ready-to-copy templates, plus the exact rules for charging late fees in Canada.
When Is a Payment "Late"?
A payment is late when it passes the due date on your invoice. The most common payment terms in Canada:
- Net 30 — payment due 30 days after the invoice date (standard for most B2B work)
- Net 15 — 15 days, common for smaller or ongoing projects
- Due on receipt — expected immediately (rare in practice)
If you didn't state payment terms on your invoice, Canadian courts apply a "reasonable time" standard — typically 30 days. Always include payment terms on every invoice. Not sure what to include? See: What to Include on a Canadian Invoice.
The 4-Step Follow-Up Sequence
Most freelancers send one follow-up, if any. The professionals who get paid fastest send four — each one slightly firmer than the last.
Step 1 — Day 1: The Friendly Reminder
Send this the day payment is due (or the day after). Keep it light — it's probably just an oversight.
Subject: Invoice #[number] — Quick Reminder
Hi [Client Name], just a friendly reminder that Invoice #[number] for $[amount] was due on [date]. Please let me know if you have any questions or need me to resend it.
Payment details: [e-transfer / Stripe link] — Thank you, [Your Name]
Step 2 — Day 7: The Polite Follow-Up
No reply after a week? Re-send the original invoice and ask directly.
Subject: Following Up — Invoice #[number] ($[amount] Overdue)
Hi [Client Name], I'm following up on Invoice #[number] for $[amount], now 7 days past its due date of [date]. Could you let me know the status of this payment? If there's an issue with the invoice or the work, I'm happy to discuss.
Payment details: [payment method + info] — Thank you, [Your Name]
Step 3 — Day 14: The Firm Notice
Two weeks late is no longer an oversight. This is where you mention late fees — even if you haven't charged them yet.
Subject: Overdue Notice — Invoice #[number] (2 Weeks)
Hi [Client Name], Invoice #[number] for $[amount] is now 14 days overdue. I've reached out twice without a response. As noted in our agreement, overdue invoices are subject to a late fee of [1.5%/month]. I would prefer to resolve this without additional charges.
Please confirm payment by [date] or contact me to arrange a solution. — [Your Name]
👉 Calculate your late fee now — free calculator: enter the invoice amount, days overdue, and rate to see exactly what you're owed.
Step 4 — Day 30+: The Final Notice
No payment after 30 days of follow-ups? Be direct. This is your last step before collections or small claims court.
Subject: Final Notice — Invoice #[number] — Action Required
Hi [Client Name], this is a final notice for Invoice #[number] in the amount of $[amount + late fees]. The original due date was [date]. If payment is not received by [final date], I will have no choice but to pursue this through small claims court or refer this account to a collection agency.
I'd strongly prefer to resolve this directly. Please contact me immediately. — [Your Name]
How to Calculate Late Fees in Canada
You can legally charge late fees in Canada — but only if you stated them on your invoice or in your contract before the work began.
The standard rate is 1.5% per month (18% annually). CRA doesn't cap late fee rates, but courts can reduce them if deemed unreasonable. Stick with 1.5%/month.
Example: $3,500 invoice, 45 days overdue at 1.5%/month → 45 days ≈ 1.5 months → $3,500 × 1.5% × 1.5 = $78.75 in late fees.
Use the Late Payment Calculator to calculate exactly what you're owed on any overdue invoice.
Do You Need to Charge GST/HST on Late Fees?
No. According to CRA Publication 3-9, late payment charges are not subject to additional GST/HST. The tax applies only to the original invoiced amount — late fees do not change the GST/HST calculation.
Automate Your Follow-Ups with Paymavo
Chasing payments manually is emotionally draining. Automation takes the awkwardness out of follow-ups and ensures nothing slips through the cracks.
With Paymavo Pro, you can:
- Send unlimited automated payment reminders (before and after the due date)
- Set custom reminder schedules per invoice
- Track which clients have opened your invoice
- See overdue invoices grouped by urgency (1–7 days, 8–14 days, 15–30 days, 31+ days) — all in one dashboard
Paymavo Pro automatically sends the right email for each stage — a gentle nudge before the due date, a polite follow-up at 7 days, a firm notice at 14 days, and a final warning at 30+ days. You never have to decide what tone to use.
On the Free plan, you get 1 manual reminder per invoice — enough to test the workflow before upgrading.
👉 Try Paymavo free — no credit card required. Send your first invoice in under 2 minutes.
